Simulation of the leasing portfolio to determine the critical parameters and their impact (e.g. different assumptions on interest rates, terms, growth)

A qualitative survey of the leasing business is also possible on the basis of a brief questionnaire to determine the scope of the project, the organization, and the IT requirements (e.g. lease structure, contract parameters, responsibilities, systems, processes)

Timely familiarization and training of the operating units and affected functions at the HQ

The results are the basis for:

Making a decision on the options in connection with the transition to IFRS 16

Planning of scope and content of conversion project (above all, time and costs)

An improvement in the quality of the current disclosures in the Notes to the financial statements for a "soft transition" to IFRS 16

Simplification assumptions and discussions with the auditor

First considerations regarding lease-strategy measures

Requirements for operating units with respect to selected parameters (e.g. estimate of terms by property type, exercising, and judging of options, leasing companies)

The early organization of data collection and management (e.g. collaboration with leasing companies, contract management databases)

We accompany our clients through all the other phases of the conversion process – detailed planning, definition of the leasing strategy, and roll-out. The FAS LeaseBOX has also given us leasing software (including ERP/SAP interface) that has been proven for years. It allows for classification, posting, and final accounting as well as a "soft" transition to the new lease accounting under IFRS 16. FAS AG has already implemented numerous collection projects for clients.